Terms & Definitions- Parts Inventory Level 1

One day course

Objective: The objective of this module is to help the Parts Managers understand the function and operation of the Parts Department. This will lead to improved fill rates, reduction of obsolescence and an increase in the level of service.

Parts Managers will learn:

1. Basic parts terms
2. The importance of lost sales
3. Lost sales and why this is critical
4. How obsolescence can hand cuff a Parts Department

The following is an overview of the program

• Managing the growing market
• The relationship between Parts and the Service Department
• The Parts Managers role
• The Parts departments goal
  • Increasing coverage
  • Decreasing investment
  • Drop inactive or obsolete parts
  • Effective ordering
• The four questions a Parts Manager must ask on a daily basis
• The OTRAF system
  • Order
  • Track
  • Receive
  • Act on it
  • Follow-up
• Tools of inventory control
• What is an inventory
• The importance of measuring parts “Turns”
• The difference between True Turn and Gross Turn
• How the Parts Department can affect Absorption
• Managing and defining Obsolescence
• Part numbers in the system
• Tracking the total part numbers in the system
• Non-stock testing
• Days supply of inventory
• Sales per employee (Productivity)
• Gross profit
• Net Profit